Financial Analysis: Sportradar Group (NASDAQ:SRAD) vs. AdTheorent (NASDAQ:ADTH)

AdTheorent (NASDAQ:ADTH) and Sportradar Group (NASDAQ:SRAD) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares AdTheorent and Sportradar Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AdTheorent	$170.81 million	1.74	$10,000.00	($0.01)	-327.00
Sportradar Group	$877.62 million	14.72	$37.51 million	$0.12	96.83

Sportradar Group has higher revenue and earnings than AdTheorent. AdTheorent is trading at a lower price-to-earnings ratio than Sportradar Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for AdTheorent and Sportradar Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdTheorent	0	2	2	0	2.50
Sportradar Group	0	3	6	0	2.67

AdTheorent presently has a consensus target price of $4.69, indicating a potential upside of 43.35%. Sportradar Group has a consensus target price of $13.78, indicating a potential upside of 18.57%. Given AdTheorent’s higher probable upside, analysts plainly believe AdTheorent is more favorable than Sportradar Group.

Volatility & Risk

AdTheorent has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Sportradar Group has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Institutional and Insider Ownership

37.7% of AdTheorent shares are held by institutional investors. 7.1% of AdTheorent shares are held by company insiders. Comparatively, 85.0% of Sportradar Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares AdTheorent and Sportradar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AdTheorent	N/A	0.07%	0.06%
Sportradar Group	4.27%	4.54%	2.27%

Summary

Sportradar Group beats AdTheorent on 12 of the 14 factors compared between the two stocks.

About AdTheorent

AdTheorent Holding Company, Inc., a digital media platform, provides programmatic digital advertising services for advertising agency and brand customers in the United States, Canada, and internationally. It uses machine learning and advanced data science to organize, analyze, and operationalize non-sensitive data to deliver real-world value for customers. The company offers predictive targeting solutions across various customer industry verticals and consumer screens, including customized targeting, measurement, and analytical services; and location-based targeting and geo-intelligence solutions. AdTheorent Holding Company, Inc. was founded in 2012 and is headquartered in New York, New York.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in St. Gallen, Switzerland.